WASHINGTON – Amid reports that House and Senate Republican leaders have agreed to a tax reform bill that would substantially cut the state and local tax (SALT) deduction by placing a $10,000 cap on a combination of property and income or sales taxes that could be deducted, Americans Against Double Taxation released the following statement:

“The substantial cut in the SALT deduction will raise taxes for homeowners in many states, drive down property values, and threaten funding for infrastructure and vital public services. The 11thhour deal by conferees to impose this $10,000 limit on a combination of state and local taxes that could be deducted does virtually nothing to alleviate the severe cost imposed on middle-class families caused by the partial elimination of SALT, which has been part of the U.S. tax code since its inception more than 100 years ago. We urge lawmakers to vote no on the conference report, as this is the only option at this stage to preserve SALT, prevent double taxation, and preserve the integrity of state and local finances.”

Independent, non-partisan analysis has shown the minor modification to SALT made by conferees would provide little relief for middle-class taxpayers; most current itemizers would not have sufficient eligible deductions to itemize under the new plan, yet they could still face tax increases. For instance, in California, the current average SALT deduction under present law is more than $23,000, exposing nearly $13,000 to double taxation.

Recently released polls have shown that restricting SALT is the least popular provision in the congressional tax reform plans, with voters preferring full preservation of SALT by a margin of 41-24%.

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About Americans Against Double Taxation

Americans Against Double Taxation is a coalition of state and local government organizations, service providers and other stakeholders dedicated to protecting the state and local tax deduction (SALT), a federal tax deduction claimed by 44 million American taxpayers that supports vital investments in infrastructure, public safety, home ownership and education.For more information, visit AmericansAgainstDoubleTaxation.org.